Expanding your business to Dubai is a great way to reach new markets and grow globally. The city has become one of the world’s top business hubs – known for its strong economy, modern infrastructure, and perfect location that connects the East and West. That’s why many international companies choose to open a branch office in Dubai to take advantage of all these opportunities.
A branch office in Dubai acts as an extension of the main company, meaning it can carry out the same business activities, build local connections, and access new clients, all while staying under the parent organisation’s umbrella.
It’s like having an extra arm of your business in a new country – you can offer your products or services, reach new customers, and operate legally under UAE laws. Plus, with low taxes, excellent facilities, and easy access to global markets, Dubai makes business expansion smoother and more rewarding than ever.
What is a Branch Office in Dubai?
Simply put, a Branch Office in Dubai is a direct, legal extension of your existing foreign company. A branch office is an outpost of your main company (the parent company) set up in the UAE.
- Not a Separate Legal Entity: This is the most crucial point. The branch does not have its own independent legal identity. It operates under the full name, legal framework, and liability of the parent company. If the branch faces any debts or legal issues, the parent company is 100% responsible.
- 100% Ownership: It is fully owned (100%) by the foreign parent company.
- Activity Scope: A branch office is generally permitted to conduct the same business activities as the parent company. For instance, if your parent company is an IT consultancy, the branch can offer IT consultancy services in Dubai (though some activities, particularly in trading, might be restricted or require specific licenses).
Branch Office vs. Other Structures in Dubai
Understanding the difference between a branch and other common expansion options is key:
| Feature | Branch Office | Subsidiary Company | Representative Office |
| Legal Status | Not a separate legal entity. | Separate legal entity (like an LLC). | Not a separate legal entity (promotional arm). |
| Liability | Parent company is fully liable for all debts/issues. | Liability is separate and generally limited to the subsidiary’s assets. | Parent company is fully liable. |
| Activities | Can perform commercial, revenue-generating activities (same as parent). | Can perform a broad range of activities, potentially different from the parent. | Cannot engage in commercial activities (no sales, no generating revenue). |
| Purpose | To directly deliver the parent company’s core business in the UAE market. | To establish a long-term, independent local presence with limited liability. | To conduct marketing, market research, and promotion only. |
Legal Framework and Licensing Authority
When setting up a branch office in Dubai, it’s important to know which authority you’ll be dealing with. This depends on whether you’re opening your branch on the mainland or in a free zone.
Mainland Branch Offices:
If you’re planning to open a branch on the Dubai mainland, it must be licensed by the Department of Economy and Tourism (DET). The DET handles all the legal approvals, trade name registration, and licensing procedures for mainland companies.
Mainland branch offices are also required to appoint a Local Service Agent (LSA), a UAE national or a company owned by UAE nationals. The LSA doesn’t have any ownership or control over your business; they simply assist with administrative tasks such as obtaining approvals, visas, and other government paperwork.
Free Zone Branch Offices:
If you choose to open your branch in a free zone, the process is handled by the respective Free Zone Authority. Each free zone has its own rules, costs, and business regulations. Free zone branches are popular among foreign investors because they allow 100% foreign ownership and often offer simplified setup procedures.
Documents Required to Open a Branch Office in Dubai
Here’s a list of the key documents you’ll typically need:
Parent Company Documents:
- Certificate of Incorporation of the parent company.
- Memorandum and Articles of Association (MOA/AOA) of the parent company.
- Board Resolution approving the establishment of a branch office in Dubai.
- Power of Attorney (POA) authorising a representative or branch manager to act on behalf of the parent company.
- Parent company’s trade license or business registration certificate.
Branch Office Documents:
- Passport copies of the branch manager and any authorised signatories.
- Appointment letter of the branch manager issued by the parent company.
- Lease agreement or Ejari certificate for the branch office premises in Dubai.
- Trade name reservation certificate (approved by DET or the respective Free Zone Authority).
- Initial approval from the relevant authority (DET for mainland or the chosen Free Zone Authority).
Additional Documents (If Applicable):
- Local Service Agent agreement, if the branch is established on the mainland, and the activity requires one.
- Approval from specific government departments, depending on the business activity (for example, financial services, education, or healthcare).
How to Set Up a Branch Office in Dubai, UAE?
Setting up a branch office in Dubai involves several legal and administrative steps. Here’s a simple breakdown of how it works:
Step 1: Choose the Jurisdiction and Business Activity
Decide whether you want to set up your branch on the Dubai mainland or in a free zone. Your choice will depend on your business activity, target market, and ownership preferences. Each option has its own rules, costs, and licensing authorities.
Step 2: Get Parent Company Approval
Your parent company must pass a board resolution authorising the establishment of the branch office in Dubai. This document should name the branch manager and specify their powers and responsibilities.
Step 3: Reserve a Trade Name
Apply for a trade name reservation with the Department of Economy and Tourism (DET) for mainland setups or the relevant Free Zone Authority. The name usually must match the parent company’s name unless special approval is granted.
Step 4: Apply for Initial Approval
Submit your documents for initial approval to the concerned authority. This step confirms that your business activity and company details comply with UAE regulations.
Step 5: Obtain Ministry of Economy Approval (for Mainland Branches)
For mainland branch offices, you’ll need to secure additional approval from the Ministry of Economy (MOE). The MOE reviews your parent company documents, board resolution, and branch activities before granting permission to operate.
Step 6: Prepare and Attest All Required Documents
All parent company documents, such as the Certificate of Incorporation, MOA/AOA, and Power of Attorney, must be notarised, attested, and legalised in both the home country and the UAE. This step is crucial for validation.
Step 7: Appoint a Local Service Agent (If Required)
While not mandatory for every business type anymore, certain mainland branch activities still require appointing a Local Service Agent (LSA). The LSA doesn’t have ownership but helps with local procedures and government coordination.
Step 8: Secure Office Space
Obtain a physical office address for your branch in Dubai and register it with Ejari (for mainland) or provide a lease agreement (for free zone). This is needed before your final license can be issued.
Step 9: Apply for the Branch License
Once all approvals and documents are ready, apply for your branch office license. After review and fee payment, the license will be issued, allowing your branch to start operations legally.
Step 10: Complete Government Registrations
Your company is now legally licensed, but you need to register with other key departments to operate and hire staff.
- Labour & Immigration: Apply for the Establishment Card with the Ministry of Human Resources and Emiratization (MoHRE) and the General Directorate of Residency and Foreigners Affairs (GDRFA). This card allows you to apply for employee visas.
- Tax Registration: Register for Corporate Tax and Value Added Tax (VAT) if your revenue meets the mandatory registration threshold.
Step 11: Open Corporate Bank Account
The final operational step is to open a bank account in Dubai, which is necessary for handling local transactions and processing employee salaries.
What is the Cost of Setting Up a Branch Office in Dubai?
The cost of opening a branch office in Dubai can vary depending on your chosen location (mainland or free zone), business activity, office size, and the number of visas you require. While Dubai offers a smooth setup process, it’s always wise to plan your budget before you begin.
The branch license cost itself usually starts from around AED 10,000 to AED 30,000, depending on the jurisdiction and type of activity. Mainland licenses are generally on the higher side compared to free zone ones, but they also offer more flexibility to operate anywhere in the UAE.
On average, the initial setup cost for a branch office in Dubai starts from AED 50,000 onwards. This covers trade name reservation, government approvals, document attestation, and other administrative expenses.
For a more accurate cost estimate tailored to your business, you can connect with AE setup experts for a free consultation.
How AE Setup Can Help
Setting up a branch office in Dubai doesn’t have to be complicated, especially not when you have the right team by your side. With All Emirates Setup, expanding your company into the UAE becomes simple, fast, and stress-free. We’ll handle everything – getting your approvals and licenses, taking care of document attestation, arranging a Local Service Agent (if needed), finding office space, opening a bank account, and managing PRO services.
With extensive years of experience, our business setup team knows how to make your Dubai expansion smooth and compliant. Get in touch with our experts today for a free consultation and cost estimate for your branch setup in Dubai.
